Which of the Following Statements Concerning Keynesian ISLM Analysis Is

question 57

Multiple Choice

Which of the following statements concerning Keynesian ISLM analysis is TRUE?

• A)For a given change in taxes,the IS curve will shift less than for an equal change in government spending.
• B)Changes in net exports arising from a change in interest rates causes a shift in the IS curve.
• C)A fall in the money supply shifts the LM curve to the right.
• D)Expansionary fiscal policy will cause the interest rate to fall.

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Definitions:

Transported

Refers to materials that have been moved from their original location to a new place by natural processes such as erosion or glaciation.

Metamorphic Rock

A type of rock formed through the alteration of pre-existing rocks in response to high heat, pressure, and chemically active fluids.

Deposition

The process by which sediments, soil, and rocks are added to a landform or land mass, often through the action of wind, ice, and water.

Uplift

The process of the Earth's surface rising due to natural geological processes, such as tectonic plate movements.